Small businesses are becoming more and more likely to accept credit cards. A research group that looked at the business world found that more than two-thirds of small businesses use credit cards to pay their bills. But only two-fifths of these businesses that use credit cards have business credit cards.
Since these small business owners already use credit cards to pay for their businesses, they might want to switch to business credit cards instead. With smart use and management, a small business credit card could be a useful tool for business owners to help their businesses "grow."
Among other things, a business credit card lets you keep business transactions and personal charges separate. This makes it easier to keep track of your money and file your taxes. A business credit card also shows people who are interested in your financial dealings, like the IRS and creditors, that you are running your business and its finances in a professional way.
The year-end statement summary that business credit card issuers send to their cardholders is a big perk of having a business credit card. This detailed list will help you break down and organise your business costs.
The small business credit card is a good way to build credit for your company. By being smart about how you use your business credit cards, you can improve your credit score. This will be an important factor if you need more money to grow or expand and need to grow your business.
You can't say enough about how important it is to manage and use your business credit card in a smart way. Some of the ways to do this are:
- Pay your bill online. Most companies that offer business credit cards let you pay online. Their websites are safe, so your online transactions will be safe. This will save time and keep you from having to pay extra fees when you use other ways to pay. It also makes sure that your payments don't get held up.
- Capitalize on grace periods. When you buy something with a business credit card, you have 21 days before you have to pay for it. You can use this to get more money in and out of your business.
- Don't miss or pay your bills late. You should be smart about making your monthly credit card payments on time for your business. If you don't pay by the due date, you could face higher interest rates, expensive fees, and a mark on your credit report.
- Use the bank in your area. There are many good reasons to apply for a small business credit card at your current bank, especially if the difference between what your bank offers and what other card issuers offer is not too big. Your relationship will make it easier for the card to be approved. It will also help you with your other deals with money.
Don't let people have more than one card. Having a few business credit cards can be helpful in some ways. But your credit scores will go down if you sign up for too many cards. It could also make it harder to keep track of your money.
Given how much better it is to use a business credit card than a personal one, switching to a business card will be a smart choice. Your business credit card is a useful tool for your business as long as this credit line is used in a responsible and careful way.
